Kiwi slips against greenback, Aussie

Wednesday 22nd December 2010

The New Zealand dollar slipped against the currencies of Australia and the US overnight, ahead of major data releases today and tomorrow.

By 8am the kiwi was buying US74.20c from US74.57c at 5pm yesterday, and was down to A74.56c against the Australian dollar from A74.83c.

ANZ bank said support for the NZ dollar had been widespread yesterday, and particularly evident against the Australian currency, although overnight the kiwi "failed to break on the topside".

New Zealand third quarter current account data, released today, and gross domestic product, out tomorrow, should provide the market with some excitement, ANZ said.

ANZ economists were expecting that re-insurance flows from the Canterbury earthquake would deliver a narrower current account deficit than the market was expecting, while the GDP release was expected to show the economy in stall mode.

The NZ dollar edged up to 0.5674 euro at 8am from 0.5661 at 5pm, and eased to 62.28 yen from 62.38. The trade weighted index was down to 67.27 at 8am from 67.39.

The euro rose against the US dollar, after supportive comments from China, throughout much of the overnight session, but fell away amid fears of more ratings downgrades of indebted euro zone economies.

The aussie remained above US99.50c for nearly all of the overnight session, and came within a whisker of parity with the greenback at one point, helped by an increase in risk appetite as stocks advanced and tensions on the Korean peninsula eased.

NZPA

Comments from our readers

No comments yet